Banking & Finance

Credit and remittances rising in HCMC

Released at: 10:40, 09/12/2015

People's Council report estimates credit up 13% and remittances 10% against 2014.

by Hung Nguyen

Total outstanding credit in Ho Chi Minh City in 2015 has been estimated at VND1,206.7 trillion ($53.69 billion), an increase of 13 per cent against 2014, in a report presented to the 20th session of the VIII Ho Chi Minh City People’s Council on December 8.

Outstanding credit in VND remains in the majority and is increasing stably. It continues to flow to the business sector and accounts for about 80 per cent of the total outstanding credit to business.

Remittances in Ho Chi Minh City during 2015 are estimated at about $5.5 billion, an increase of 10 per cent against last year, higher than the estimated $5.2 billion and accounting for one-third of Vietnam’s total remittances of $13-$14 billion.

According to research by the Central Institute for Economic Management (CIEM), remittances to Vietnam have increased by an average of 38 per cent each year since 1991.

Between 2007 and 2013 overseas remittances were the second largest capital source in Vietnam, after disbursed foreign direct investment (FDI) - and outstripped the amount of disbursed official development assistance (ODA). In the 2004-2006 period it was the country’s largest source of capital, according to CIEM.